According to Mark Modzelewski, executive director of the Water Innovations Alliance, an industry association made up of corporations, investors, research centers and other stakeholders, an information technology-based grid system could help the U.S. save between 30% and 50% of the water used each year.

"It is vital that an effort be made to create and fund a water information technology initiative through partnership with the [information technology] industry," Modzelewski said. "A coordinated effort could result in a system being put in place in just a few years."

Christine Furstoss, general manager of technology for General Electric Co.'s water and process technologies, called a smart water grid a "wonderful idea." Furstoss noted that the technology to implement such a system does exist, although there would be challenges in developing adequate sensor technology and obtaining reliable data.

Other speakers at the hearing highlighted the need for a national water census and the need to coordinate research funding.

Peter Gleick, president of the Pacific Institute for Studies in Development, Environment and Security, suggested a national census with data on national water resources and use be done by the U.S. Geological Survey through a minimum $25 million allocation every 10 years.

University of California-Berkeley professor emeritus and water expert Henry Vaux noted that funding for water resources research has remained static since the mid-1970s, taking inflation into consideration. The annual federal investment in water resources research today is approximately $700 million.